The effect of an economy's growth on its balance of payments has been a subject which has received a good deal of attention in the recent literature in international economics. Much of this attention derives from general dissatisfaction with the theoretical and empirical aspects of the standard...

One of the puzzling features of the recent behavior of the Canadian unemployment rate is its persistence in the presence of a sustained expansion in real national income. Neither deficient aggregate demand nor a once-for-all, supply-side-induced increase in the natural rate provides a convincing...

In this essay I explore the implications of regional economic integration for the currency arrangements appropriate within and between regions. This topic is motivated by the recent rekindling of interest in fixed exchange rates which, in turn, has been due in part to disappointment in the...

The Friedman-Phelps view of the Phillips curve - that in the long run when expectations have adjusted, there is no trade-off between inflation and employment- is reconsidered. That view implies the only real effects that can arise from inflation are those due to expectational disequilibria. This...

This paper contends that Witte's specification of the price of capital as determined by stock equilibrium considerations with investment arising as a "price taking" response, is myopic. An alternative model is presented where the price of capital is determined by simultaneous consideration of...

This paper explores several alternative models of the exchange rate which highlight the role of real and monetary factors and the short- and long-run effects of exchange rate changes on real output. The first model focusses on purchasing power parity with flexible prices and a variable real...